Gold Price Prediction – Gold Hits Resistance as Riskier Assets Rebound
Gold prices surged higher on Monday the first day of 2019 only to meet with robust selling as prices reached 1,288. Yields moved lower but then rebounded as riskier assets in the US gained traction allowing the dollar to gain a foot hold and putting pressure on the price of the yellow metal. With Asian and European stocks coming under pressure on the first day of the new year, gold prices were initially buoyed.
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Gold prices where rebuffed at higher levels after attempting to break higher. Prices where halted near the 1,288 level, which is now seen as short-term resistance. Additional resistance is seen near the June 2018 highs at 1,303. Support is seen near the 20-day moving average at 1,253. Additional support is seen near the 50-day moving average at 1,254. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. This occurred in overbought territory as the fast stochastic was printing a reading of 91, which is above the overbought trigger level of 80 and could foreshadow a correction. Positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory which points to decelerating positive momentum.
Congress Will Meet with the White House
Congressional leaders from both parties are expected to attend a White House border briefing and then are invited to meet with the President to negotiate an agreement that would end the partial government shutdown. January 2, is the last day of the old congress and a new one with be sworn in on Thursday. The new House of Representatives are expected to pass a bill that is similar to the senates bill that would allow the government to reopen until February 8. This will likely be a non-starter for the administration which is looking for money for a border wall.